Detailed Business Plan: Launching Tango Cafe in London, UK Market

This document presents a comprehensive business plan for Tango Cafe, a new cafe venture in London. The plan details the business's name, mission, vision, and objectives, emphasizing its focus on providing services to the youth market. It includes a business description outlining the products and services offered, along with a unique value proposition centered on quality management, information technology integration, and effective supervision. The opportunity analysis justifies the chosen market, incorporating industry analysis using Porter's Five Forces and environmental analysis via PEST. The marketing strategy and plan highlight the use of a competitive pricing strategy and digital channels for promotion. Furthermore, the plan covers management and operations, financial analysis, and projections, providing a holistic view of the business's potential for success. Desklib offers students access to this and many other solved assignments.

Business plan

EXECUTIVE SUMMARY
Business plan refers to a statement of a new enterprise. It has all the details about how the
entrepreneurs of the new enterprise plan on start with the business. the business plan has all the
details about the name, location, date, financial funds required, mode of acquiring funds and
details about the entrepreneurs of the business. The further report highlights one such business
plan of a café getting established in the London city. All such details of the business are
mentioned therein the following report.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................5
Name of business along with its mission, vision and objectives............................................5
Business description including product service offered by a business and its unique value
preposition..............................................................................................................................5
Opportunity analysis (Justification of chosen market, industry analysis, environmental
analysis)..................................................................................................................................6
Marketing strategy and plan (set by new business)................................................................8
Management and operations...................................................................................................9
Financial analysis and projections........................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business plan is considered as a major future based approach related to the establishment
of a new business at the marketplace. It is essential for an individual to develop a focused and
major business plan for overall development of the company. In the recent times, due to increase
in competition between companies, it is crucial for the business entity to develop a focused
business plan. Most of the business plans involve development of a precise business strategy for
the long term growth. In this project different dimensions of a business plan are covered along
with different projections and analysis. This report includes management-based analysis of a new
plan in order to effectively manage a business. The report also includes marketing plans and
strategies for the promotion of a new business.

MAIN BODY
Name of business along with its mission, vision and objectives
Selecting a name for a corporation may be the first stage toward creating a new brand and
image for the organisation. It'll be the public's initial impression of the business. Because many
of the greatest names have already been trademarked, coming up with a suitable business name is
more challenging than ever. However, with rising advertising expenditures and competition, a
good name is essential for establishing a memorable brand image. In summary, the name being
picked for the business may make or kill it.
The name of the business will be Tango Cafe and it will be a major cafe with good
infrastructure in London city. Tango cafe will provide effective services to youth in order to
develop focused business practices and earn good amount of revenue. The Cafe will also use
various tools and techniques in order promote mission and vision of company.
 Vision- The vision will include the development of cafe in a more defined manner in
order to achieve various objectives and goals of the company. This is major responsibility
of a company to achieve vision with the help of management approaches. Main vision of
Tango Cafe will include creating a major hub for cafe in UK by the year 2024.
 Mission- To develop staff management and operations related to key aspects of Cafe
management in order to achieve mission. The main mission of Tango Cafe is to focus on
achievement of increase in 25% of the sales by 2024.
 Objectives- It is essential for a business entity to focus on key objectives which are to be
achieved by a business for marketplace success. All key objectives of Tango Cafe must
be achieved that are to establish a great cafe in London, great financial returns on
business transactions. Focused growth and planning are also two major pillars of
objective of a company which are essential for business growth.
Business description including product service offered by a business and its unique value
preposition
The thing for sale is referred to as a product. A product can be either a service or a physical
thing. It might be physical, virtual, or cyber in nature. Every product has a cost, and every
product has a price. The price that may be paid is determined by the market, quality, marketing,

and target group. Each product has a functional life after which it must be replaced, as well as a
life cycle during which it must be re-invented.
The Cafe will include major modern practices which are essential for overall development of
the new business. Cafe will include attractive dances and lounge for youth in order to gain
effective growth rate at the marketplace. All major companies in international and national
marketplace will be able to provide goods and services to Tango Cafe. The Cafe will offer all
types of snacks and coffee to different customers on very reasonable rates. Tango Cafe will be
also able to provide world class services to customers in order to develop their satisfaction.
Tango Cafe is a major cafe of London which will include basic practices of development in order
to strategically focus on key goals. All major companies in international marketplace should
focus on creating an unique value preposition. The Unique value preposition of Tango cafe will
be following:
 Quality management- The act of quality management includes various practices that are
useful for a product for maintaining quality. In order to maintain quality in a business
products, it is essential to take support of quality management. The quality management
and its focus should be on operations management of Cafe to provide standard snacks and
coffee.
 Information and technology- The Tango Cafe will include practice of information and
technology in order to perform accurate and quick operations. This is key role of
management to develop an IT based strategy for overall growth of organisation. The IT
skills should be used by new business to perform operations related to computer and
software. The Tango Cafe will also use customer relationship management software in
order to increase faith and trust of new customers.
 Supervision and monitoring- It is also key responsibility of management to develop
supervision and controlling on major functions of the company. Practice of supervision
also makes a company competitive in the marketplace and keeps eye on its plans and
strategies. The supervision and monitoring based aspects of business development are
related to focused growth and expansion of a company in a short period of time.
Opportunity analysis (Justification of chosen market, industry analysis, environmental analysis)
The approach of examining the possibility for a modification or upgrade to improve
revenue production is known as opportunity analysis. The sort of opportunity will vary, ranging

from tiny chances within an existing production model that lead to cost savings or increased
overall efficiency to the launch of new product lines that boost overall profitability.
The industry analysis is an important aspect of business development. In industry analysis for
Tango Cafe is mentioned below which is developed by company with help of porter's five forces:
 Bargaining power of buyers- The analysis of industry is essential for focused growth of
a business in a set period of time. In the recent times, bargaining power of customers is
important for a business. For a new business like Tango Cafe, the bargaining power of
customers is high as there are many famous cafe present in London city.
 Bargaining power of suppliers- It is crucial for a business entity to focus on
development of bargaining power of suppliers in order to gain market growth. In the case
of Tango cafe, bargaining power of suppliers is high due to Brexit and it includes huge
expenses to meet expectations of suppliers.
 Competitive rivalry- This will include major cafes which are present in London City in
a large quantity. The competitive rivalry includes various business organisations which
are performing business in the marketplace.
 Threat of competitors- Major competitors of Tango Cafe will include its different
competitors in London city. There are various companies in marketplace which focus on
competitors by development of a major competition based strategy.
 Threat of substitutes- In the market, there are various substitutes present which impact
on major operations and product sale. In order to gain competitive advantage Tango Cafe
should provide quality products and services to citizens of London.
PEST analysis
In the functioning of a business at the marketplace, PEST analysis play a major role
analysis of external and macro environment. The PEST analysis is also effective in development
of a key strategy for facing macro environment based factors. PEST analysis of New Tango Cafe
is mentioned below:
 Political factors- The political factors are related to rules and regulations developed by
government of UK for major business organisations. There are also various corporate
laws which are formulated by government of United Kingdom which are essential for a
business to be followed. This also includes start up loans which are provided by
government to new business organisations.

 Economic factors- These factors are related to economic policy of a country in order to
control financial aspects of the country. The economic factors include economic factors
like inflation and deflation rates which are there in the economy. It is essential for a
business entity to focus on economic factors in order to develop main advantage over
competitors.
 Social factors- Social factors are related to social practices of a company which are
considered in order to develop precise international approach. In order to develop
effective and fresh internal environment in the company, it is crucial to focus on social
factors like culture and traditions.
 Technology based factors- The technology based factors play a crucial role in
development of IT practices in a business. It is also a major business strategy of a new
business, to focus on information and technology based functions and tasks. New
business can use application of customer relationship management for key approach in
marketplace.
Marketing strategy and plan (set by new business)
Marketing strategy is defined as strategic business plan which is used by companies in order to
reach potential buyers and convert them into loyal customers. In order to frame effective
marketing plan, a company needs to understand the combination of elements of marketing mix. It
is desired to work and choose an effective marketing mix at the initial stage of business in order
to plan further activities strategically. It is beneficial for companies as it aids them to take
profitable marketing decision. Varied elements of marketing mix in relation to Tango Cafe are
discussed below:
Products\ Services: These are something which company sale to make a profit. It can be a
physical product or intangible service. While deciding the products or services to be offered
by organisation, it should evaluate their demand, utility and competition in the market.
Tango Cafe decided to offer a variety of products which are usually seen in cafes such as
espresso, latte, doughnuts, croissant and many more. Owner of Tango Cafe should hire staff
for preparing varied products and serving them to their customers. It can also create a
special menu and provide discounts for regular customers.
Price is something which is willingly given by consumers in order to purchase a specific product
or avail service. While deciding price for any product, manager of Tango Cafe should decide

which pricing strategy best suits their business. Tango Cafe has chosen competitive pricing
to implement in their cafe. This strategy states that prices are determined on the basis of
competition in the market. This is specifically used when offered products are similar to
competitors in market. Manager of Tango Cafe can quote low prices at its initial stage in
order to attract more consumers.
Promotion is defined as marketing strategies framed by organisations in order to promote their
products or services in a effective way. Organisations uses varied traditional and modern
methods which are used for framing promotional tactics. Tango Cafe can use digital
channels and social networking sites to promote it. Manager of Tango Cafe can take help of
social media influencers and content writers to attract customers. Promotional tactics should
be designed in such a manner that it essentially helps business in increasing their conversion
rate. Advertisements should be designed and post on social media channels in attractive
manner so that it can reach to large number of people.
Place can be termed as physical online store where firm presents all its products or services in
order to influence customers to make a buying decision. Managers of Tango Cafe has
chosen a place in London busiest marketplace. They have chose this place as people can do
shopping and can rest in their cafe. Mangers also has developed their official website citing
their products or services. It can be easily browsed by consumers and they can also free
home delivery to a specified distance. These has made easy for consumers to get their
favourite food items just by one click.
Management and operations
Management is a wide term which means to manage things around a person with major
responsibility. In the corporate world, management is considered as the backbone of a business
entity for development of effective operations. It is also crucial for new business to focus on
development of a team in order to manage the work. Also there is a important need of different
management practices which are essential for long term development of a company. This is also
a main deal for the company to focus on various aspects of team management in order to gain
desired growth. The operations management of a company should hire team members with
consideration by subordinate employees for decision making. All major companies in domestic
and global marketplace which are new, develop a key approach for focused and essential growth
of a business. Most of the companies should also focus on analysing business development

parameters associated with fresh techniques to conduct a new business. Tango Cafe will have a
dedicated management team for each and every functions. The cafe will achieve major goals and
objectives which are set at the starting of financial year.
Team management based practices- Management of whole team can be performed with the
help of team based approaches in marketplace. Leadership is a crucial aspect which should be
considered by a business entity in order to manage a team. The business must use effective
practices which are related to leadership for effective development of different operations. In the
recent times, it is important for a company to choose democratic leadership practices for overall
development of the company. In this approach, a business should analyse key factors and goals
that are fruitful for decision making.
Skills and qualifications and training- Skills development is considered as utmost priority of
an organisation which is essential for key development based practices. The skills like decision
making, time management and problem solving should skills are important for focused
development of a business entity. Proper training and development should be provided to
employees with help of professional management practices. Major qualifications of supervisor
and manager of Cafe will be decided by top level management of the Tango Cafe. The training
should be provided with the support of professionals in the company in order to achieve all
targets in a set period of time.
Financial analysis and projections
Sources of funding:
The Tango Cafe will consider following sources of funding:
 Banks- Banks are important source of finance for the company which provides loan
facilities to support new or existing business. The banks are considered as major source
of finance which is legit in nature. It is also responsibility of a new business to take loan
in an ethical manner.
 Creditors- Creditors are considered as important sources of funding which are
considered as personal sources of funding. It is important for new Tango Cafe to take
borrowings from creditors in order to develop sustainability in business.
 Financial agencies- There are several micro finance agencies in United Kingdom which
provides loan facilities to a business. The financial agencies charge nominal interest and

they improve financial strength of a company. Main focus of a business entity is on
financial agencies which are able to support development of a new company.
Cash flow statement

Break-even analysis of new Cafe-
Break-even point (in units) = Fixed Cost / (Selling price per unit – Variable Cost per Unit)
= 7453 / (994.5 – 716.42)
= 7453 / 278.08 = 26.80
Margin of Safety: (Current Sales – Break Even Sales) / Current Sales * 100
= (50 – 26.80) / 50 * 100
= 45.4 %

Projected balance sheet-
Exit plans and milestones-
The exit plan and milestones are two major important strategies for a business which
contains vital decision making and management. If the company will face loss and decline in
sales then, it may consider to exit the market. Tango Cafe will decide exit plans with support of
strategic management and top level management to include effective operations. Company will
easily exit the market and shut down its business in a set period of time. Risk is essential part of
a business which includes development of focused approach.

CONCLUSION
From the above stated report it can be concluded that business plan is considered a
detailed document which includes strategic framework by a business organisation. The
application of business plan also include development of different policies and plans which are
important for overall development of a business. This project also concludes the importance of
strategic management in a business to support new and ethical business practices. The above
stated discussion also concludes key role of a business in order to fulfil key organisational and
marketing goals. This project also includes the importance of top level and strategic management
of a company to develop key objectives and goals related to new business plan.

REFERENCES
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